How to succeed with momentum to value

Special thanks to Emily Suwanski for contributing to this article.

Unlock strategic value with a new approach in supply chain transformation.

In brief

• Be ready for the race.
• Embed and build capabilities.
• Maintain a momentum to value mindset.

The momentum to value (M2V) framework for supply chain transformations embodies a proactive approach to transformation, from early preparation to rapid value realization. By focusing on quick wins and strategic priorities across the supply chain, organizations can build momentum toward larger-scale transformations while mitigating risks and maximizing chances of success. Businesses that consider strategies across transformation areas including governance and strategic vision, operating model and organizational maturity, process design, data management, technology landscape, and change management will be set up for successful transformations using the M2V framework.

The M2V framework is based on three key pillars: Ensure organizations are ready for the race, build and embed value-promoting capabilities, and maintain momentum throughout the transformation journey.

Be ready for the race

In today’s hypercompetitive market, the pressure to innovate, adapt and change has become the norm. It is more crucial than ever to be ready for the race in today’s ever-evolving supply chain. Organizations that proactively identify potential barriers and create strategies to overcome these are more likely to succeed in their transformation journey. At the onset of the journey, employing an end-to-end and value-driven solution mindset can rapidly transform ideas into a robust and achievable plan, resulting in quick victories while generating enthusiasm, reinforcing commitment, and financing long-term goals.

Build and embed capabilities

Organizations should focus on developing key capabilities and embedding them into existing processes to ensure continuous delivery of value. The goal of build and embed is to shift from a singular project-based perspective to viewing the supply chain holistically and nurturing sustainable capabilities to ensure ongoing value.

Maintain momentum

Maintaining momentum requires avoiding complacency, encouraging continuous learning and improvement, and promoting an organizational culture that emphasizes sustained progress and value creation. Organizations that maintain momentum throughout their transformation journey can ensure adaptation with changing business landscapes, resulting in self-funding supply chain programs.

Without following these concepts, organizations often fail to continuously improve upon and sustain the impact they have achieved during the transformation due to performance discipline eroding after the first year, budgets becoming misaligned with new objectives, and management teams failing to continue investing in the future.

Leverage the M2V framework to kick-start your successful transformation journey! Organizations can explore various functional areas to drive strategic value while maintaining a holistic view of their end-to-end supply chain. Key areas can include:

Logistics and fulfillment

• Leverage digital simulation to optimize transportation network savings.
• Utilize transportation analytics to capture business value.
• Ensure master data readiness to address data gaps and enhance data quality.
• Conduct DC capacity analysis to align physical needs with strategic objectives.
• Implement warehouse operations improvement programs to drive operational alignment.
• Leverage real-time visibility and collaboration to predictively plan for transit delays.

Supply chain planning

• Enhance S&OP to create better consensus plan leveraging consolidated demand and constrained supply plan.
• Leverage analytics and simulations to improve forecast and right-size inventory.
• Perform supplier segmentation analysis to align with supply chain strategies and organizational goals.
• Establish multi-tiered collaboration to improve visibility, reduce risks, foster innovation and build sustainability.
• Stabilize assortment with category management standardization.

Control tower

• Create integrated data leveraging above supply chain processes.
• Generate a highly modular and customizable control tower solution.

The key to a successful transformation journey is to generate value early on, build scalable strategies, and sustain the drive. M2V offers a strategic framework that helps businesses efficiently organize, execute and enhance their transformation programs. This framework equips organizations to consistently succeed despite the ever-changing market dynamics and highlights that success is not just about reaching the finish line, but about designing self-sustaining and self-improving supply chain programs.